Kathmandu: An International Monetary Fund (IMF) capacity development team, under the leadership of Jonathan Pampolina, has successfully completed a Governance and Corruption Diagnostic (GCD) mission in Nepal. The mission, which took place from April 20 to May 6, 2026, covered Kathmandu and Birgunj, following a request from the Government of Nepal.
According to United News of Bangladesh, this effort builds on a previous scoping mission conducted earlier in January 2026 and aligns with the structural reform agenda under the current Extended Credit Facility. The GCD represents a significant step in Nepal’s ongoing collaboration with the IMF, aiming to enhance governance, reduce corruption vulnerabilities, and promote macroeconomic stability and inclusive growth.
The diagnostic is designed to pinpoint critical governance weaknesses in institutions, policies, and practices that might hinder economic performance, fiscal sustainability, business and investment climate, and public trust. By identifying these vulnerabilities, the GCD will offer concrete, sequenced, and prioritized reform recommendations to tackle corruption risks that pose challenges to Nepal’s economic development.
Nepal’s recent election of a single majority government with a strong reform mandate presents a unique opportunity to drive a transformative governance agenda. This initiative is expected to unlock more robust and inclusive medium-term growth for the country.
The mission included experts from several IMF departments, such as Fiscal Affairs, Monetary and Capital Markets, and Legal, who collaborated with government counterparts and stakeholders to evaluate governance and corruption vulnerabilities across key state functions. This was in line with the IMF’s 2018 Governance Framework.
Discussions were held extensively with Nepali authorities involved in public financial management, revenue administration, financial sector oversight, anti-money laundering, and rule of law. Focus was placed on the effectiveness of legal and institutional frameworks in preventing, detecting, and addressing macro-critical corruption risks.
The mission also engaged with representatives from civil society organizations, academicians, think tanks, the private sector, business associations, and international development partners. These discussions offered valuable insights into governance challenges, reform priorities, and opportunities to enhance accountability, transparency, and trust in public institutions.
The IMF team expressed gratitude to the Nepali authorities and all stakeholders for their engagement, hospitality, and open dialogue. The collaboration on the GCD will continue, with a draft report outlining findings and a reform plan expected to be shared with authorities for further input in the coming months. The final report will be published upon receiving consent from the authorities.